EFFECT OF VALUE ADDED TAX ON CONSUMER BEHAVIOR (A CASE STUDY OF DAMATURU BAYAN TASHA MARKET)

The study determined the effect of Value Added Tax on Consumers Behavior in Damaturu Bayan Tasha market. The problem statements of the study as stated in chapters one was the price of VAT able goods, income of the consumers and consumptions of the consumers. The objective of the study as also stated in chapter one was to determine the effect of price of vatable goods on consumers Behavior, to determine the effect of income on consumers behavior and to determine the effect of consumption on Consumers behavior. The study adopts survey method. Simple percentage techniques was use in analyzing the data collected and chi-square for SPSS was used to test the hypothesis. The population of the study is the entire marketers of Damaturu Bayan Tasha market that have something to do with the research work. A sample size of 50 was draw using simple random techniques both primary and secondary source of data were used. In findings of the study, It shows that price of vatable goods, income of the consumers and consumptions of the consumers affect consumers Behavior. The study therefore recommends that Government should decrease the VAT rate so as to make the prices of VATable goods affordable to the Consumers, and government should also look at the wages and salaries of consumers, so that their income should determine their VAT charges, so also, consumers should look at the various substitute goods for them to maintain their consumption level stable.